Today’s Market Outlook:

[I’m still working my way through a bout of pneumonia. So, the paragraph below reflects what occurred in markets today, Wednesday the 6th. But, the video below is from Friday with the material mostly still very relevant as stocks have stayed tightly rangebound]

Today, the S&P 500® closed two points higher with minuscule trading volume and range. Not surprisingly, the intermediate posture remains strongly bullish with rising long-term Market Sentiment. The near-term line pulled back but remained in the chart’s upper half for a 20th straight session. The momentum line bounced up from extreme lows as stocks rallied off their mild intraday drop. The 3-day pullback this week still has not come close to approaching even the 23% Fibonacci retracement level of its prior near-term run. On the other hand, the Russell 2000® does show more of a true near-term pullback. The small-cap index has produced a bullish intermediate confirmation signal combined with the potential of a bullish near-term low. Keep in mind, the Russell also formed a bullish near-term low last week and the Dow and NASDAQ Composite formed their previous near-term lows previously. So, the S&P is the only one left to have the near-term line dip below the chart’s midpoint and have the index form any kind of low to bounce off of in the short term.